Employer Regulations

An owner of a business in Georgia that hires employees must follow the general employer regulations to operate a business in the state.

• Income Tax Withholding Guidelines: It is recommended by the Internal Revenue Service that you maintain accurate employee tax withholding records for tax filing purposes and basic bookkeeping. Employers must obtain a signed income tax withholding form (Form W-4) from each employee. Employees must complete a Form W-4 at the time they are hired for employment. The Form W-4 must be filed with the IRS by employers, who are responsible for federal employee income tax withholdings.
• Federal Wage and Tax Statement (Form W-2): Employers must file annually a federal wage and tax statement (Form W-2) with the Social Security Administration by the end of February or March 31 of the previous tax year. Businesses must send Copy A of the W-2 to the Social Security Administration and send copies of the W-2 to employees by January 31 of the current tax year. All employers must complete a Form W-2 for each employee they paid a salary, compensation or wage during the tax reporting year.
• Employee Eligibility Verification (I-9): Under federal law all employers must obtain a completed and signed employee eligibility verification form (I-9) from each employee they hire. The I-9 form verifies whether an employee is eligible to legally work in the U.S. The form must be completed within three days after the new employee is hired. The law applies to both citizens and non-citizens. Failure to submit the I-9 form will make the new employee ineligible to work in the U.S.
• New Employee Hiring: All Georgia employers must report new employee hires and re-hires to the Georgia New Hire Reporting Program. Employers can report new hires using the online reporting form. An employer is required to report a new hire even if the employee ends up working for only one day. Re-hires must be reported by employers if they are returning to work following a layoff, furlough, leave without pay, or other form of termination of employment. Temporary agencies must also report each employee they place on assignment.
• Insurance Requirements: If your company has employees you must file a tax-and-wage report each business quarter with the Georgia Department of Labor. Employers will receive a report during the last week of the reporting quarter and must return the report by its due date. Employers are required to report all employee wages, as well as tax on the first $8,500 in earnings for each employee per year. The report can be filed online, by mail, or via Magnetic Media. Employers are obligated to carry Workers’ Compensation insurance. They can purchase this insurance from a commercial carrier or through the state Workers’ Compensation Insurance Program from the State Board of Workers’ Compensation. Employers can also be self-insured.